A ceasefire agreement between the United States and Iran, finalized between June 15 and 18, 2026, allows for a 60-day reopening of the Strait of Hormuz for commercial vessels — a crucial route that carries around 20% of the global oil supply. The blockade imposed by Iran since the conflict began on February 28 has led to a spike in gasoline costs and disrupted supply chains in the US. Financial markets responded swiftly to the news: the S&P 500 saw a 1.9% increase while oil prices dropped nearly 5%. Nevertheless, Iranian state media has indicated that vessels must still obtain permission from a newly formed Persian Gulf Strait Authority to pass through, casting doubt on the extent of free navigation allowed.
